"Kitco" is a familiar name to many people who visit our world-famous, award-winning website www.kitco.com. With its compelling combination of an online precious metals store, live spot prices, expert market commentaries, up-to-the-minute news and usable market information, our website attracts nearly a million visits every day.
Kitco Metals Inc. is also one of the world's premier retailers of precious metals and a leading supplier of refining services, labware for mineral analysis and precision-crafted devices for high-technology manufacturing processes.

Comex Gold, Silver End Firmer on Safe-Haven Investment Demand

(Kitco News) -Comex gold and silver futures prices closed the U.S. day session modestly higher Monday morning. The precious metals were boosted on more safe-haven investment demand as the European Union’s sovereign debt woes continue. However, a stable U.S. dollar index and crude oil prices hitting a fresh six-month low Monday did limit the upside in the precious metals. August gold last traded up $2.20 an ounce at $1,541.30. Spot gold last traded up $0.40 an ounce at $1,541.00. July Comex silver last traded up $0.247 at $35.995 an ounce.

The EU sovereign debt crisis saga wears on, and that’s an underlying bullish factor for the precious metals markets. After weekend meetings between Greek officials, the European Union and the International Monetary Fund, there was no agreement reached on a bailout package regarding Greece’s debt crisis. In fact, those officials are now saying it will be mid-July before any agreement is reached. Meantime, there is a vote of confidence for the Greek president scheduled for Tuesday. The IMF warned Monday that the Greece debt crisis that is presently in focus could spill over into a dangerous European or worldwide debt contagion if not dealt with properly.

The U.S. dollar index traded near steady Monday and was supported on safe-haven buying interest and more short covering as the EU debt crisis plays out. The Euro currency has been under strong selling pressure recently due to the EU debt crisis. While the stronger dollar index has limited the upside in the precious metals, history shows that both the greenback and gold can appreciate during times of keener market anxiety.

Crude oil prices were steady to weaker again Monday and hit a fresh six-month low near $91.00 a barrel overnight. Recent price action in crude oil has produced serious near-term chart damage to suggest still some more downside price potential for crude in the near term. Further downside moves in crude oil would be a bearish underlying factor for the precious metals markets.

The London P.M. gold fixing was $1,544.00 versus the previous P.M. fixing of $1,537.50.

Technically, Comex August gold futures prices closed near mid-range Monday. Gold bulls have the overall near-term technical advantage and are quietly gaining fresh upside technical momentum. Prices are in a 4.5-month-old uptrend on the daily bar chart. Bulls’ next near-term upside technical objective is to produce a close above solid technical resistance at the June high of $1,555.00. Bears’ next near-term downside price objective is closing prices below solid technical support at last week’s low of $1,511.40. First resistance is seen at Monday’s high of $1,548.20 and then at $1,555.00. First support is seen at Monday’s low of $1,533.60 and then at $1,525.00. Wyckoff’s Market Rating: 7.0.

July silver futures prices closed nearer the session high Monday. Silver bulls have the overall near-term technical advantage. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of $32.30. Bulls’ next upside price objective is producing a close above solid technical resistance at $37.86 an ounce. First resistance is seen at Monday’s high of $36.20 and then at $36.50. Next support is seen at $35.50 and then at Monday’s low of $35.26. Wyckoff’s Market Rating: 6.0.

July N.Y. copper closed down 300 points at 407.00 cents Monday. Prices closed nearer the session high today. A stable U.S. dollar index Monday and crude oil prices hitting a fresh six-month low did help to pressure copper prices Monday. Copper bulls and bears are on a level near-term technical playing field. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at the May high of 426.70 cents. The next downside price breakout objective for the bears is closing prices below major psychological support at 400.00 cents. First resistance is seen at Monday’s high of 411.00 cents and then at 415.00 cents. First support is seen at 405.00 cents and then at Monday’s low of 401.00 cents. Wyckoff’s Market Rating: 5.0.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.